Mass adoption on PUDO collection points
Last Mile Logistics
As e-commerce continues its massive and turbo-charged development, last mile logistics will play an ever-increasing role in fulfilling the demands of such development. Beyond growing in tandem with e-commerce, last mile logistics require greater innovation to better serve online shoppers worldwide. We have definitely seen innovation in this space, and we explore them in this post- from the traditional home delivery to the latest innovation of Pick-up Drop-Off (PUDO) points gaining traction now.
Home Delivery: Tried & Tested
The most conventional approach to last mile logistics is the tried and tested home delivery of parcels by third party logistics partners. This solution works well enough, but requires a recipient to be always present in the household. Therein lies the problem in this otherwise elegant solution- that noone wants to be stuck at home just to receive their parcel! We are busy individuals with mobile lifestyles and constantly changing plans, coming and going in a whim. What results then is the massive problem of 60% of customers missing their parcel delivery.
Smart Lockers: A Costly Innovation
One alternative solution would be the use of smart lockers. Blanketing the streets with these lockers eliminates the problem of missed parcel delivery and grant customers greater choice and flexibility when it comes to parcel collection. It’s an innovative solution except for one reason- the massive costs involved. Each locker cost $5000-$35,000 to build and maintain, and that isn’t even counting the cost of the prime real estate each locker sits on. Combine this with the network of lockers required to make the idea work and it’s easy to see why smart lockers haven’t revolutionized last-mile logistics.
Self-collection: Experiencing Growing Demand
While smart lockers has not worked out perfectly, it did confirm customers’ desire for self-collection. In fact, according to PWC,
“Southeast Asia consumers who are willing to pay extra to collect orders at a convenient 3rd party location still represents a meaningful proportion (40%).”
The underlying problem here then, is the cost of each locker. Still leveraging on retail space but replace these lockers with well-trained retail staff collecting parcels on customers’ behalf instead, and you get the same solution at a cheaper cost. China’s Taobao is clearly ahead here, partnering with retail stores to establish 200 self-pick locations in Hong Kong alone. There is always innovation in last mile logistics and this reiteration adds another great option for parcel collection.
Latest Reiteration: Singapore’s Park N Parcel
In Southeast-Asia, this reiteration has evolved yet again. Why limit self-pickup locations to lockers and retail stores when we can leverage on human capital even nearer to us. In SIngapore, Park N Parcel has introduced another option for last-mile logistics.By tapping on underutilized residential spaces and creating a sharing economy around excess space, Park N Parcel has created a network of 1500+ PUDO points islandwide.
Park N Parcel is also the first adopter of LogisticsX, and we are immensely proud to have them on board. We would be doing a profile of Park N Parcel here tomorrow, where we take a look at how they started and their journey thus far.
Do follow this page for more information regarding them this week!
About LogisticsX
LogisticsX aims to utilise blockchain technology to create a decentralised platform that will tackle the challenges in the last-mile logistics. It is envisioned that the trustless nature of the platform will provide the foundation for a harmonized ecosystem between the different stakeholders involved in the last-mile process. LogisticsX will introduce sharing economy into the ecosystem, utilizing untapped space (Parker) and time (Runner) to further enhance the efficiency.
LogisticsX envisions to set forth the global common standard for the connection between logistics stakeholders to increase efficiency in a global parcel delivery network.
Further Readings:
Website: https://www.logisticsx.io
Telegram: https://t.me/logisticsx
Twitter: https://twitter.com/LogsXOfficial
Whitepaper: https://logisticsx.io/documents/LogisticsX-Whitepaper-V1.4-11-June-2018.pdf
For investments or Partnerships, please contact us at: enquiries@logisticsx.io
